In this article, we will look at 5 stocks least vulnerable to a recession. If you want to explore similar stock ideas, you can also read 10 Stocks Least Vulnerable to Recession.
5. Amgen, Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 56
Amgen, Inc. (NASDAQ:AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide. The company specializes in the areas of inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience.
As of July 20, Amgen, Inc. (NASDAQ:AMGN) has gained 8.80% year to date and has a high dividend yield of 3.14%, which the company can support with its free cash flows of $8.41 billion.
On June 1, Oppenheimer analyst Jay Olson raised his price target on Amgen, Inc. (NASDAQ:AMGN) to $290 from $285 and reiterated a buy-side Outperform rating on the shares.
At the close of Q1 2022, 56 hedge funds were long Amgen, Inc. (NASDAQ:AMGN) and held stakes worth $1.88 billion in the company. This is compared to 52 positions in the prior quarter with stakes worth $1.82 billion. The hedge fund sentiment for the stock is positive.
As of June 30, P.A.W. CAPITAL PARTNERS is the top shareholder in Amgen, Inc. (NASDAQ:AMGN) and has stakes worth $0.87 million in the company. The investment covers 1.27% of the fund’s 13F portfolio.
4. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 64
The Coca-Cola Company (NYSE:KO) is an investors’ go-to stock if they want to shelter from macroeconomic pressures, simply because of the company’s legacy operations, a business model that has passed the test of time, and an established position in the industry. As of July 20, The Coca-Cola Company (NYSE:KO) has gained 8.75% over the past twelve months and is offering a forward dividend yield of 2.81%, which the company supports with its free cash flow of $10.24 billion.
Over the past 3 months, 17 Wall Street analysts have given their 12-month price targets and ratings for The Coca-Cola Company (NYSE:KO). The stock has been given 13 Buy ratings and 4 Hold ratings, which brings its consensus rating to Strong Buy. The stock has a high price target of $76 and a low price target of $64. The stock’s average price target of around $70.5 implies a 14.59% upside from its closing price of $61.50 on July 20.
At the end of Q1 2022, 64 hedge funds were eager on The Coca-Cola Company (NYSE:KO) and disclosed stakes worth $29.17 billion in the company. This is compared to 70 positions in Q4 2021 with stakes worth $28.61 billion.
As of March 31, Berkshire Hathaway is the leading shareholder in The Coca-Cola Company (NYSE:KO) and owns 400 million shares of the company. The investment covers 6.82% of Warren Buffett’s 13F portfolio.
Here is what ClearBridge Investments had to say about The Coca-Cola Company (NYSE:KO) in its “Dividend Strategy” fourth-quarter 2021 investor letter:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
3. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 72
Wall Street analysts are bullish on The Procter & Gamble Company (NYSE:PG). On June 21, Deutsche Bank analyst Steve Powers trimmed his price target on The Procter & Gamble Company (NYSE:PG) to $157 from $171 and reiterated a Buy rating on the shares. Over the past 3 months, the stock has received 5 Buy ratings and 3 Hold ratings and has a consensus Buy rating. The stock has a high price target of $180 and a low price target of $145. The stock’s average price target borders $162 and implies a 14.72% upside from its closing price of $141.55 on June 20.
The Procter & Gamble Company (NYSE:PG) has weathered through bear markets and recessions. The company has been in business since 1837 and has been consistent with growing its dividends for more than 6 decades. As of June 20, the stock has a forward dividend yield of 2.54%, which the company backs with over $13.9 billion of free cash flows.
At the close of Q1 2022, 72 hedge funds disclosed ownership of stakes in The Procter & Gamble Company (NYSE:PG). The total value of these stakes amounted to $6.06 billion. This is compared to 67 hedge funds in Q4 2021 with stakes worth $6.61 billion.
As of June 30, Ayrshire Capital Management is the top shareholder in The Procter & Gamble Company (NYSE:PG) and has stakes worth $3.52 million. The investment covers 2.49% of the fund’s 13F portfolio.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
On July 19, Johnson & Johnson (NYSE:JNJ) released its earnings for the fiscal second quarter of 2022. The company reported earnings per share of $2.59 and came in ahead of Wall Street expectations by $0.02. The company’s revenue for the quarter amounted to $24.02 billion, up 3.04% year over year, and beat market consensus by $195.47 million. Johnson & Johnson (NYSE:JNJ) reiterated its full-year 2022 guidance, but trimmed its forecast for revenue to a range between $93.3 billion and $94.3 billion and also its diluted EPS guidance to a range between $10 and $10.1 in light of underperformance from its med-tech segment in Q2.
Wall Street analysts remain bullish on Johnson & Johnson (NYSE:JNJ). Over the past 3 months, the stock has received 8 Buy and 3 Hold ratings. It has a high price target of $215 and a low price target of $165. Johnson & Johnson’s (NYSE:JNJ) average price target borders $191 and implies an 11.73% upside from its closing price on July 20, which sits at $170.71.
As of July 20, Johnson & Johnson (NYSE:JNJ) has gained 3.54% over the past six months and is offering a forward dividend yield of 2.63%. Johnson & Johnson (NYSE:JNJ) has consistently grown its dividends for well past 50 years.
At the close of Q1 2022, 83 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ) and disclosed stakes worth $7.40 billion in the company. This is compared to 83 positions a quarter ago with stakes worth $7.38 billion.
As of June 30, Ayrshire Capital Management‘s stake in Johnson & Johnson (NYSE:JNJ) is valued at $5.98 million. The fund is the leading shareholder in the company.
1. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 84
Merck & Co., Inc. (NYSE:MRK) is a healthcare company with operations worldwide. The company was founded in 1891 and has weathered bear markets and recessions since then. The company operates through two segments: Pharmaceutical and Animal Health. Merck & Co., Inc. (NYSE:MRK) has been consistent with growing its dividends for a decade now. As of July 20, Merck & Co., Inc. (NYSE:MRK) is offering a forward dividend yield of 2.91% which the company supports with its trailing twelve-month free cash flows of $12.72 billion.
Wall Street analysts are bullish on Merck & Co., Inc. (NYSE:MRK). This July, Daiwa analyst Narumi Nakagiri raised her price target on Merck & Co., Inc. (NYSE:MRK) to $102 from $89 and upgraded the stock to Outperform from Neutral. On July 8, Morgan Stanley analyst Terence Flynn raised his price target on Merck & Co., Inc. (NYSE:MRK) to $88 from $87 and maintained an Equal Weight rating on the shares.
At the end of Q1 2022, 84 hedge funds held stakes in Merck & Co., Inc. (NYSE:MRK). The total value of these stakes came in at $5.86 billion, up from $3.78 billion a quarter ago with 80 positions. The hedge fund sentiment for the stock is positive.
As of June 30, Beech Hill Partners is the largest shareholder in Merck & Co., Inc. (NYSE:MRK) and has stakes worth $6.7 million in the company. The investment covers 3.58% of Beech Hill Partners’ 13F portfolio.
Carillon Tower Advisers, an investment management firm, mentioned Merck & Co., Inc. (NYSE:MRK) in its “Carillon Clarivest International Stock Fund” first-quarter 2022 investor letter. Here is what the firm said:
“Merck (NYSE:MRK) is a global pharmaceutical and chemicals company based in Germany. Shares fell along with other vaccine-linked names after the U.S. Supreme Court blocked a rule mandating that businesses with more than 100 employees require those employed to either be vaccinated or tested weekly.”
You can also take a look at 10 Stocks to Buy Before the Next Recession and 10 Best Recession Stocks To Buy.
